Car Reaffirm...need a guru!

[2confused]

So, I go to my not so nice lawyer today to sign a reaffirment that he is very against. I'm not exactly sure why he is so against it because I did my homework and realize that my 6.6 interest rate can't be beat, and i'm not really that far under (as far as balance). He's obviousy annoyed when i get there and cleary i am wasting his time and making a stupid decision, so i ask him if it states anywhere that this will be reported to credit bureaus afterward (to help reestablish my credit) Once again, he is further bothered that I need this information. It got to a point of me just saying, how about if you just sign it and i'll send it (wanted to get out of his office and never see him again) He said he already signed it and I could send it to attorney but he wouldn't bother sending it to court because "if they want their money, they can turn it in" (lovely, i know) Anyway he said once in a while, there will be a court hearing to justify reaffirmation, but it is rare.
I call credit union, discuss event, display my frustration with the $350 reaffirmation charge. Talk about the credit thing, panic, cry and make a 450 payment.
Now, I get home and look at it... he wrote that our income is 9,000 and our expenses are 12,500 and that this leaves $o to make payment (he also told me he wasn't going to lie and this is why he was writing whatever he wrote...which is funny, because i'm quite sure this gentleman (sarcasm) lies and does so regulary. After seeing this page, I am about to rip it up and call it a day...for, know, i think i understand what my jerka__ attorney was getting at. This could possibly open up a door that i don't want to go through. My dh is self-employed and perhaps we're going to have to justify EVERYTHING now, if i reaffirm...What do you think?

[HHM]

Sorry to say, but I think your attorney is right.

[2confused]

HHM,
But why didn't he just say so in the first case (the ratio it incorporated) I would not have hesitated (or made a payment)

[Teddy]

ok, I am confused! 2confused - I asked this in my post about reaffirmations but here goes in your thread.

I see that you are with a CU - so am I. Do you think I should call CU and find out if they have such a charge to reaffirm? It looks like it's the CU who is wanting the $350, right? So you went ahead & made your $450 car payment then?

I emailed my attorney to see if they know if my CU has this sort of fee. It will make a difference on whether I decide to reaffirm or let car go.

[2confused]

Well Teddy, Just yesterday I went to go sign and discovered this information. When i asked the cu about the $350 charge they said they "split the attorney fee (hard to believe) and spread it throughout the lengtj of loan to make it easy on me." I was so confused and can't stand my attorney, I said to myself and the cu to take out a payment. When i reviewed the affirmation when i got home, i noticed the last page. in our case, it said 9,000 income and 12,000 debt and it "could" go to court and have a hearing...Oh, and they could offer nothing in writing to say it would report to credit....just told me to take their word. i'm over it and am going to hand it in as soon as i need to.
I'm sure they have a reaffirm charge and it does seem ridiculous. Perhaps they want the car back...well, take it back. I'm sick to my stomach that i made a car payment but the guy from the cu said sometimes they'll take vehicle the day after discharge if you're late so perhaps this buys me time...time to not freak out and buy the first thing i see...you know what i mean...what was dana saying, bully's-perhaps...but maybe they just don't want to deal with us bk people, which i understand....just know your account will be closed if you don't reaffirm, luckily i already opened another one in the mean time...(with a bank)

[HHM]

Well, now you are starting to see why nearly every experienced member on this board recommends against reaffirmation and why nearly ALL attorneys recommend against it.

Not to mention the fact, there really is no benefit to you. By doing a reaffirmation, you are giving the bank a huge benefit and receiving nothing in return.

CU's suck when it comes to filing BK.

[2confused]

HHM, any idea how long it usually takes before they'll come get it...i am current, but will not make may payment (which is due on14th of may) and discharge is scheduled for May 27thish. Any suggestions as to where to go or advise on getting another vehicle?

[HHM]

Why would you not make the May payment?

So, instead of reaffirming, you want to surrender.

[Teddy]

I emailed my CU and asked if there was a fee - and if it's mandatory to reaffirm. I'm awaiting their response. I also emailed the atty and they said no fee, but I'm not sure they understood that I was asking if they knew I was asking if the CU has a fee.

Maybe I shouldn't have done it, but I want to know now. I was definitely planning on keeping my car. Maybe I should open up a checking account somewhere else just in case I need it.

HHM - I think 2confused is going to surrender her car.

I am really questioning my attorney - he recommended me to reaffirm! I am glad I found this board, at least it gives me things to think about.

[2confused]

I'm not thinking cleary!!! I just checked my checking account, not only found the payment i made, but also paid for new registration $225 (wasn't even due until June) I was planning on surrendering, but now am reconsidering. That's 700 down the drain, i guess, without reaffirming, i feel like a renter. I'm very concerned about reestablishing credit which is why i was going to surrender. Aren't i just throwing money down the drain, don't i need a car payment to really help reestabish credit? Should i make may payment...please help me focus, i'm really getting overwhelmed.

[HHM]

Look, your attorney is on the ground out where you are. Thus, he likely (hopefully) knows the specifics that we, on this board, do not know.

Don't ask the CU if reaffirmation is mandatory (they want you to sign it, are they really going to say no). Granted, CU's are difficult to deal with BK. If anything, you simply tell them, I plan on keeping my car and making payments on time, but will not reaffirm; and see what they say.

Did, or has, the CU actually approached you to reaffirm (before you ever mentioned it). If they have not approached you with a reaffirmation and have not filed a motion to lift stay, then all you need to do is keep making the payments and you will be able to keep the car.

The problem with CU's and car loans, is CU's have their own sort of "internal universal default" when it comes to their cross collateralization. It is not so much that they repo cars that are current because you did not reaffirm the car, it is because many debtors with CU's are including the CU's credit cards, lines of credit, overdraft, etc in their BK, but since every account is cross collateralized, a default on one is a default on all.

[Teddy]

My attorney made it sound like that was why I should reaffirm. Of course, he made no mention of perhaps they don't report! At least you have a month to decide whether to make your May payment.

My CU said they don't have a fee, but they do require the reaffirmation. I have now asked her if they report to the CB's once you sign it and what if I don't sign, will they repo my car.

[HHM]

I'm not thinking cleary!!! I just checked my checking account, not only found the payment i made, but also paid for new registration $225 (wasn't even due until June) I was planning on surrendering, but now am reconsidering. That's 700 down the drain, i guess, without reaffirming, i feel like a renter. I'm very concerned about reestablishing credit which is why i was going to surrender. Aren't i just throwing money down the drain, don't i need a car payment to really help reestabish credit? Should i make may payment...please help me focus, i'm really getting overwhelmed.

Yep, you are not thinking clearly.

Look, more than anything else, only TIME will heal credit. My guess is, you have a half way decent deal on your current car, correct? If you surrender, and try and go buy another car, you are going to get a very crappy deal, all for the sake of re-establishing credit. That is VERY POOR decision making, sorry to say.

Focus on your FINANCES, your credit will take care of itself over time. Focus on your income and expenses, reduce your expenses, make sound financial decisions, etc.

I see too many people get paralyzed (mentally), and make poor decisions because they have bought into the whole credit worthiness thing. You really need to read the posts in the rebuilding credit forum and read our members stories. Without exception, with some simple credit repair (making sure accounts are reported properly after BK), within 2 years, their credit is back on track.

[2confused]

I don't think they will repo if you keep payments current, or at least my brain never got that far. i only got so far as to sign reaffirm or surrender. how stupid is it to pay 450 per month
for 2004 acura that i will probably eventually get rid of? (walk away from)

[2confused]

Sorry for overlap, i think we were typing at the same time...